{"id":83626,"date":"2024-07-08T10:08:10","date_gmt":"2024-07-08T14:08:10","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=83626"},"modified":"2024-07-08T10:08:14","modified_gmt":"2024-07-08T14:08:14","slug":"canada-to-sanction-liquitrade-for-violating-securities-act","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/canada-to-sanction-liquitrade-for-violating-securities-act\/","title":{"rendered":"Canada to Sanction LiquiTrade for Violating Securities Act"},"content":{"rendered":"\n

British Columbia Securities Commission (BCSC) panel reports that LiquiTrade is guilty of operating an illegal exchange<\/a> in Canada, which could result in sanctions ranging from fines to a ban<\/p>\n\n\n\n

\"Canada
Canada to Sanction LiquiTrade for Violating Securities Act<\/figcaption><\/figure>\n\n\n\n

In November 2022, LiquiTrade's Latoken crypto exchange was initially accused of violating Canada's Securities Act for processing $300 million in daily transactions for its 1.5 million user base.<\/p>\n\n\n\n

Latoken cryptocurrency exchange<\/h2>\n\n\n\n

According to a BCSC commission, LiquiTrade violated the Canadian securities legislation nearly two years into the investigation:<\/p>\n\n\n\n

\n

\u201cLiquiTrade has never been registered in any capacity under the Act, and there is no recognized exchange or clearing agency in British Columbia operated by LiquiTrade or\u00a0using the name LATOKEN.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Numerous violations for LiquiTrade<\/h2>\n\n\n\n

By allowing users to trade contractual rights of underlying crypto assets, the BCSC panel determined that LiquiTrade was deemed a derivative investment.<\/p>\n\n\n\n

Consequently, LiquiTrade was compelled to register under the Securities Act to facilitate contract trading in Canada, specifically British Columbia lawfully. The statement included the following:<\/p>\n\n\n\n

\n

\u201cThe panel also found that LiquiTrade was operating as an exchange. But it was not authorized to do so by the BCSC\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, as required by the Act.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

As of March 2024, Canada has prohibited the operation of four cryptocurrency exchanges: Catalyx, KuCoin, Poloniex, and xt.com. Conversely, the region permits the operation of 15 crypto trading platforms, including Fidelity, Coinbase, and Bitbuy.<\/p>\n\n\n\n

The potential sanctions against LiquiTrade include a prohibition of services and monetary penalties.<\/p>\n\n\n\n

\"According
According to the court filing, the sanctions on LiquiTrade will be finalized by Aug. 14.<\/figcaption><\/figure>\n\n\n\n

The sanctions against LiquiTrade will be formalized by August 14, as indicated in the court filing.<\/p>\n\n\n\n

Licensed trading platforms continue to prosper as Canada implements regulations against unregistered crypto exchanges.<\/p>\n\n\n\n

Dean Skurka, CEO of Canadian crypto asset platform WonderFi,<\/a> stated in an interview with Cointelegraph, “We have certainly observed a resurgence in retail.”<\/p>\n\n\n\n

“It is not going to occur overnight,” Skurka stated; however, there are indications of public interest in cryptocurrency. He observed that WonderFi experienced a surge in new signups concurrently with Bitcoin's new all-time high price.<\/p>\n","protected":false},"excerpt":{"rendered":"

British Columbia Securities Commission (BCSC) panel reports that LiquiTrade is guilty of operating an illegal exchange in Canada, which could result in sanctions ranging from fines to a ban In November 2022, LiquiTrade’s Latoken crypto exchange was initially accused of violating Canada’s Securities Act for processing $300 million in daily transactions for its 1.5 million […]<\/p>\n","protected":false},"author":12,"featured_media":12328,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[20389,709,20390,20391],"class_list":["post-83626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bcsc","tag-canada","tag-liquitrade","tag-securities-act"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/10\/Canadian-city-sets-to-supply-residents-heat-using-energy-from-Bitcoin-mining.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/83626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=83626"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/83626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/12328"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=83626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=83626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=83626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}